Insolvency Regulator Repeals Nearly A Dozen Old Circulars

India’s insolvency regulator repealed nearly a dozen circulars issued previously to help insolvency professionals in their work as other regulations are already addressing such matters.

A review of regulations and circulars found that certain circulars are no longer required as their subject matters are already being provided in some other regulations, Dilip Arjun Khandale, deputy general manager at the Insolvency and Bankruptcy Board of India (IBBI) said in a circular.

IBBI said the subject matters of withdrawn circulars are already provided in the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations 2016, the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations 2016 and the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations 2017.

The regulator withdrew the circulars, which were issued between 2018 and 2021, with immediate effect on the following subjects:

• Use of registration number

• Insolvency professionals to ensure compliance with provisions of the applicable laws

• Insolvency professionals not to outsource his responsibilities

• Fees payable to insolvency professionals and to other professionals appointed by them

• Disclosures by insolvency professionals and other professionals appointed by them for conducting resolution processes

• Confidentiality of information relating to processes under the Insolvency & Bankruptcy Code 2016

• Surrender of membership

• Annual compliance certificate for insolvency professional agencies

• Monetary penalties to be imposed by an insolvency professional agency

• Commencement of disciplinary proceeding

• Statutory repositories under regulation

• 21(2)(c)(ii) of the Insolvency and Bankruptcy Board of India (Information Utilities) Regulations 2017